US wholesale inventories +1.3% in line with expectations

AI summary

<p>U.S. wholesale inventories increased strongly in July, while sales rebounded following June’s decline. Inventories grew faster than sales during the month, pushing the inventories-to-sales ratio modestly higher.</p><p></p><p>Wholesale inventories</p><ul><li><p>July inventories: $958.9 billion</p></li><li><p>Month over month: +1.3% versus 1.3% expected</p></li><li><p>Year over year: +5.7%</p></li><li><p>The monthly increase was unrevised from the advance estimate</p></li></ul><p>The 1.3% rise in inventories was relatively strong. That could indicate wholesalers are rebuilding stocks in anticipation of future demand. However, if inventories continue rising faster than sales, it could also suggest that goods are beginning to accumulate in warehouses.</p><p>Wholesale sales</p><ul><li><p>July sales: $801.3 billion</p></li><li><p>Month over month: +0.8% versus -2.9% last month</p></li><li><p>Year over year: +13.0%</p></li><li><p>June’s decline was revised to −2.9% from −3.0%</p></li></ul><p>Sales rebounded in July after falling sharply in June. That is a positive sign for business demand, although the 0.8% increase did not fully reverse the previous month’s 2.9% decline.</p><p>The annual gain remained strong at 13.0%. However, the data are not adjusted for price changes, meaning some of that increase may reflect higher prices rather than wholesalers selling a proportionately larger quantity of goods.</p><p>Inventories-to-sales ratio</p><ul><li><p>July 2026: 1.20</p></li><li><p>J